Why Did Chhattisgarh HC Postpone Hearing on Chaitanya Baghel’s Petition?

Raipur, Aug 12 (NationPress) The Chhattisgarh High Court has decided to postpone the hearing regarding a petition submitted by Chaitanya Baghel, the son of former Chief Minister Bhupesh Baghel, related to the extensive liquor scam and money laundering allegations. A single bench led by Justice Arvind Kumar Verma has allowed the Enforcement Directorate (ED) a timeframe of two weeks to provide its response, leading to a rescheduling of the next court session.

Chaitanya Baghel was taken into custody by the ED on July 18 at his home in Bhilai and has remained in judicial detention for 24 days. His arrest was prompted by recent raids that uncovered financial documents purportedly tied to unlawful activities.

The ED contends that Baghel was instrumental in laundering more than Rs 1,000 crore sourced from a liquor syndicate, with Rs 16.7 crore allegedly funneled into real estate ventures to obscure the funds' origin.

In his petition to the High Court, Chaitanya has questioned the legality of his arrest, labeling it as “unconstitutional” and claiming procedural breaches by the ED under the Prevention of Money Laundering Act (PMLA).

The Supreme Court had previously denied his request for relief, instructing him to seek redress from the High Court.

This liquor scam, which reportedly unfolded between 2019 and 2022 during the Congress-led administration, is estimated to have inflicted losses surpassing Rs 2,100 crore on the state treasury.

The ED has implicated a network of bureaucrats, politicians, and business figures in orchestrating the fraud, allegedly receiving directives from the “highest political executives” within the state.

Numerous significant arrests have been executed, including that of former Excise Minister Kawasi Lakhma, a businessman, a former IAS officer, and an ITS officer.

The FIR lodged by the Economic Offences Wing in January 2024 names over 70 individuals and organizations.

Bhupesh Baghel has publicly criticized the ED’s actions, claiming they are politically motivated and a misuse of central agencies targeting opposition figures.

Nonetheless, he has expressed confidence in the judiciary and committed to fully cooperating with the investigation.

The forthcoming hearing in the High Court is anticipated in the last week of August, with Bhupesh Baghel and Chaitanya Baghel implicated in the alleged liquor scam in Chhattisgarh.

The ED regards Chaitanya Baghel as a primary architect of this illicit operation.

The alleged illegal syndicate functioned through the Chhattisgarh State Marketing Corporation Limited (CSMCL), reportedly soliciting bribes from liquor producers while granting them market shares. It is claimed that off-the-books sales of locally produced liquor via government outlets, manipulation of FL-10A licenses for foreign liquor commerce, and cartel-like practices were employed to cleanse substantial proceeds from crime.